After the cut in repo rate by the Reserve Bank of India, the country's big public and private banks have reduced interest on FDs. The earnings under fixed deposits have now become limited. But meanwhile, there are some banks in the country which are offering interest up to 8.8 percent on FDs. Let us tell you about those banks and the interest rates offered by them.

There are some small finance banks in the country, which are offering great interest on FDs to senior citizens. Talking about small finance banks like Suryodaya Small Finance Bank and Utkarsh Small Finance Bank, these banks are offering attractive interest rates of 8.80% and 8.70% for senior citizens. Apart from this, many other public and private banks are also giving good interest on FDs to senior citizens.

Bank FD Rate
Suryaday Small Finance Bank 8.80%
Utkarsh Small Finance Bank 8.70%

Effect of repo rate cut on FD

The Reserve Bank of India has cut the repo rate by 100 basis points in the financial year 2025. In the June 2025 meeting, the RBI cut it by 50 basis points. At the same time, in the monetary policy meeting held in February and April, there has been a reduction of 25-25 basis points.

Ever since the repo rate has been reduced by the RBI. Since then, almost all the big private and government banks of the country have improved their interest rates. The interest given on FD has been revised. Because whenever the RBI reduces the repo rate. The pressure on the banks also reduces. They give loans at low interest rates. Banks reduce interest rates on FD because now they do not have to pay more interest to raise funds.

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